The name of the street is a semordnilap, as it reads like "Alexander" spelled backward. Although there aren't any official conclusions to the origin of the name, it is believed that the road was part of the property owned by a Mr. Alexander, and 'Rednaxela' is an understandable transposition of the English name 'Alexander', since the Chinese language is written right to left.[2][3] Most of the naming errors in Hong Kong are a result of incorrect or inaccurate translations or transliterations, so some believe the explanation of this unique example of right-to-left transposition error in Hong Kong under colonial bureaucrats inconceivable. Another explanation is that the name is linked to abolitionist Robert Alexander Young, who was known to have used the name "Rednaxela" in his 1829 work Ethiopian Manifesto.[1] Whatever the source of the name, Chinese transliteration followed suit and was adopted by the neighbourhood, and the government never made any further alterations.[1]

From December 1891 to June 1892, the Filipino revolutionary and national hero José Rizal lived with his family at Number 2, Rednaxela Terrace, then working as an eye clinician in Hong Kong. The Hong Kong government erected a commemorative plaque in 2004 on the intersection of Rednaxela Terrace and Shelley Street to honour Rizal.[1][3]